Financial services provider CIC Insurance Group has reported 818 percent rise in net profit to Kes1.4 billion for the period ended December 2023 attributable to higher revenue and improved investment income.

The Group's Life business reported Kes6.7 billion in insurance revenue, which was 22 percent jump from 2022 earnings as a result of increased new business in the year that saw a 33 percent growth in the firm's credit portfolio.

The profit before income tax was Kes1.3 billion, being a 431 percent turnaround in growth from the Kes378 million loss before tax suffered in the previous year.

Additionally, General Insurance revenue rose by 21 percent to close the year at Kes15.5 billion. The company further reported a 24 percent Return on Equity growing from 10 percent reported in the prior year.

The company’s assets under management grew by 15 percent to Kes146 billion up from Kes127 billion in 2022. What's more, CIC Group experienced 30 percent increase in customer base.

Meanwhile, regional subsidiaries have continued to improve with a contribution of 13 percent to the insurance revenue of the Group during the period. CIC Uganda insurance revenue grew by 30 percent while CIC South Sudan expanded by 70 percent even as the insurer's Malawi business posted 19 percent uptick.

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Operating expenses

"We have continued to invest on product offering expansion within our regional business which has been reflected in the revenue growth," CIC Group noted in a statement.

At the same time, the firm's operating expenses increased to Kes1.5 billion from Kes1.3 billion, representing a 10 percent jump in line with the overall business growth.

The regional insurer says that the management is now focusing on product innovation to ensure alignment of their offerings to the dynamic customer needs and preferences as well as implementation of a robust digital transformation strategy that will not only focus on on-boarding emerging technologies but also a re-imagining our business processes and model to ensure seamless customer experience.

"We are also looking at product offering expansion for our regional business to cover individual life, medical and asset management."